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Consider five firms, producing five different products. Any firm could produce any of the five products (after making appropriate investments), because it is easy to
Consider five firms, producing five different products. Any firm could produce any of the five products (after making appropriate investments), because it is easy to learn how to make these products. The five firms have different advantages. Firm A sells in the largest market Firm B has the largest share of its market. Firm C has unique access to a critical input. Firm D is experiencing the fastest growth in profits. Firm E produces in the market that is growing fastest. Which firm is most likely to earn positive economic profits in the very
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